In the world of small business lending, there is often a blurred line between what is a personal expense and what is a business expense. At the same time, many small business owners operate their company as if it were an extension of their personal life. In most of these cases, the small business is a family business and an extension of the family. So the questions becomes: can you use a business line of credit for personal use? In other words, can the line of credit be used to pay expenses that are not related to the business. The answer is an unequivocal no.
Can I get a small business loan with a 700 Credit Score?
The answer is simply yes, you can get a small business loan with a 700-credit score. Great! But you could get a small business loan with an 800-credit score or a 600-credit score and even a 500-credit score. The reality is that personal credit score is not even close to as relevant of a factor when obtaining a small business loan as it is when looking to be approved for a personal or consumer credit loan. The actual answer is much more complex. This blog will provide some clarity into the role of personal credit when applying for small business loans.
A line of credit can be an invaluable tool for many small business owners throughout the United States. There is one problem: not enough small businesses have opened a line of credit. In order to better understand how a small business can obtain a line of credit, the fundamental questions are what are the requirements for a business line of credit? Why is a business line of credit the best choice for a small business, if it is the best choice?
There are many businesses in our economy that borrow money. There are other businesses that would like to borrow money. At the same time, many small business owners are not consulted on the difference between a small business loan and a consumer loan. Let's not forget the segment of the business world that believes all small business loans are SBA loans. The first step in understanding how to find a quality for the best small business loan for your company is to understand what is a small business loan.
You Can Get a Small Business Loan Even with Bad Credit
In order to answer the question above, it is first important to understand what is meant by credit score. There are two types of credit scores that may be used in determining qualification for a small business loan,
For so many business owners, the idea of qualifying for a small business loan is a stressful proposition. In order to mitigate much of this stress, the best starting point is by understanding the process in answering ‘how do I qualify for a small business loan?’. Unlike other unknowns, such as ‘how do I get a line of credit for my business’, this answer is much more straight forward.
One of the most frequent questions upon which we advise our clients is when to use a business line of credit as opposed to a business term loan. We commonly advise our clients based on the use of funds and rate of return. In other words, what are they doing with the funds and how quickly will that merchant see a return.
It is a very common for new potentials clients to ask the question: how do I get a line of credit for my business?
This is a great question and yet still one the most difficult to answer. Though our rates start at 4.8%, there is no average rate because business funding can vary based on industry, annual revenue, geography, cash flow, credit, business credit, security interest, no security interest, and lots more.